This study is brought to you courtesy of www.google.com/think/insights
Global Automotive Study A Look at the Role of the Internet in the Automotive Shopping & Purchasing Process Around the World Google/NetPop November 2009
We set out to learn What does auto shopping look like around the world? 2
17 countries 16,827 vehicle purchasers 1 consistent survey 3
Methodology Research was conducted among new and used car buyers in 17 countries who had purchased a new vehicle within the last 12 months. From a representative sample of the Internet population in each market based on age and gender, 16,827 people, age 18 or older were drawn from market research panels to complete a survey online. Approximately 1000 interviews were completed in each country distributed across the following quotas: New Car Buyers Used Car Buyers TOTAL Interview Dates (day.month) Argentina 500 502 1002 04.04 24.04 Australia 501 510 1011 13.04 07.05 Brazil 500 508 1008 17.03 31.03 China 501 504 1005 21.05 06.06 France 500 507 1007 27.07 03.08 Germany 500 508 1008 22.07 30.07 India 509 500 1009 06.05 20.05 Italy 506 500 1006 22.07 03.08 Japan 501 500 1001 03.06 01.06 Mexico 500 510 1010 04.04 26.04 Netherlands 500 510 1010 22.07 05.07 New Zealand 307 405 712 24.04 16.05 Poland 500 506 1006 17.09 05.10 Russia 508 501 1009 22.07 30.07 Spain 503 503 1006 23.07 04.08 United Kingdom 500 511 1011 21.07 30.07 United States 501 505 1006 17.03 21.03 Total 8337 8490 16,827 17.03 05.10 4
Country Segmentation Vehicles Sold per Capita Established Evolving Emerging 0.05 0.04 0.03 0.04 0.04 0.04 0.03 0.03 0.04 0.04.040 0.01 0.01 0.01 0.01 0.01 0.00 0.02.012.005 AU DE ES FR IT JP NL NZ UK US AR BR MX PO CN IN RU Internet Penetration Rates Established Evolving Emerging 53% 52% 49% 49% 55% 69% 90% 80% 66% 73% 65% 23% 25% 21% 42% 25% 19% 7% 21% 14% AU DE ES FR IT JP NL NZ UK US AR BR MX PO CN IN RU 5
Areas of Investigation 1 Demographics 2 Start of Research 3 Shopping Online & Traditional Resources Search Online Video User Generated Content 4 Recommendations 6
Demographics 7
Age & Hours Online Age of New Car Buyers, Average Established 42 42 43 36 39 39 46 41 42 40 37 41 Evolving 33 33 37 Emerging 32 30 33 35 32 AU DE ES FR IT JP NL NZ UK US AR BR MX PO CN IN RU Hours Online, Weekday Average Established 4.7 4.0 5.3 3.9 3.7 3.3 3.8 4.7 4.7 Evolving 5.7 5.6 6.3 6.2 4.4 3.4 Emerging 5.4 6.2 6.2 4.4 5.6 AU DE ES FR IT JP NL NZ UK US AR BR MX PO CN IN RU Q: On average, how many hours per weekday do you spend on the Internet? Please indicate your age. Base: New car purchasers, prior to quota-sampling 8
Purchase Purchased a Vehicle Within the Last 12 Months Established Evolving Emerging 24% 23% 16% 22% 22% 11% 20% 19% 25% 24% 26% 35% 32% 22% 21% 36% 27% 21% 29% 28% AU DE ES FR IT JP NL NZ UK US AR BR MX PO CN IN RU Type of Purchase 59% 41% 59% Used Car New Car Used Car 41% New Car 36% Used Car 64% New Car Q: Please tell us the last time you purchased each of the following types of vehicle. 9
Start of Research 10
Purchase Triggers Former vehicle no longer functional 14% 16% 23% Improved fuel efficiency 9% 11% 14% Change of circumstances 8% 12% 13% Wanted a second/another vehicle 9% 12% 14% The latest safety or convenience features 8% 12% 12% Did not own a vehicle previously 5% 12% 26% Better financing options 4% 10% 9% 0% 5% 10% 15% 20% 25% 30% Emerging (n=1518) Evolving (n=2000) Established (n=4819) Q: What was the main trigger for the purchase of your vehicle? Base: New car purchasers 11
Number of Considered Brands Established Evolving Emerging 3.4 4.2 4.0 3.2 3.8 2.7 3.4 3.7 3.5 3.4 3.9 4.4 4.9 4.8 4.5 4.4 3.7 4.7 4.3 1.7 AU DE ES FR IT JP NL NZ UK US AR BR MX PO CN IN RU Base: New car buyers Q: When you first started your research, which vehicle makes were you considering? 12
Loyalty Loyal Switched New to market 0% 10% 20% 30% 40% 50% 60% 70% 80% Emerging (n=1369) Evolving (n=1958) Established (n=4595) Base: New car buyers Note: Excludes those who could not indicate a previously-purchased brand Q: Which of these statements best describes the vehicle you purchased? What was the make or brand of your previous vehicle? What was the make/brand of the vehicle that you purchased? 13
Length of Shopping Process Established Evolving Emerging Avg. Number of Calendar Days in Market 3.1 months Avg. Number of Calendar Days in Market 3.4 months Avg. Number of Calendar Days in Market 3.9 months Time Spent Actively Researching 11 days Less than 1 week: 60% Less than 1 month: 84% 1 month or longer: 16% Time Spent Actively Researching 15 days Less than 1 week: 48% Less than 1 month: 75% 1 month or longer: 25% Time Spent Actively Researching 15 days Less than 1 week: 45% Less than 1 month: 75% 1 month or longer: 25% Base: Purchased new car n=4819 n=2000 n=1518 Q: In which month did you start thinking about purchasing the vehicle? In which month did you actually make the purchase? Approximately how much time did you spend actively researching vehicles from the time you first started to look into a vehicle to the time you purchased it? 14
Online & Traditional Sources 15
Internet Use for Auto Research Established Evolving Emerging 74% 77% 73% 80% 74% 61% 74% 75% 78% 82% 82% 82% 71% 75% 70% 72% 64% 69% 84% 78% AU DE ES FR IT JP NL NZ UK US AR BR MX PO CN IN RU Base: New car buyers Q: As you started to research your vehicle purchase, where was the first place where you began searching for information? Please select any additional places whe you looked at any stage in researching your vehicle purchase. 16
First Source for Research Global Average (47%) : Internet versus Traditional Sources 48% 45% 46% 32% 31% 19% 20% 8% 7% 6% 8x 3% 7% 12x 24x 7% 3% 2% 2% 3% 3% 2% 2% 2% Internet Auto dealerships Friends, family, colleagues Magazines / brochures Newspapers Private sellers TV Established (n=4819) Evolving (n=2000) Emerging (n=1518) Base: New car buyers Q: As you started to research your vehicle purchase, where was the first place you began searching for information? 1 7
Sources Used Throughout Research 78% 75% 74% 72% 72% 65% 60% First source used 30% 40% 35% 32% 45% 23% 35% 34% 29% 28% 26% 19% 16% 15% Internet Auto dealerships Friends, family, colleagues Magazines / brochures Newspapers Private sellers TV Established (n=4819) Evolving (n=2000) Emerging (n=1518) Base: New car buyers Q: Please select any additional places you looked at any stage in researching your vehicle purchase. 1 8
Resources Across Research Timeline Impact of Channels on the Purchase Decision Process (Global Average) TV / Print Other sellers Friends/family Dealerships Online sources 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Beginning of Research 0% End of Research Base: New car buyers Q: Please select the channel of influence from online sources, dealerships, friends & family, and TV, newspapers, magazines and other media, that was most influential for: 19
Use of Manufacturer Sites Used manufacturer sites Established 47% Evolving 41% Emerging 47% For Car-Related Specifications Compare specifications Learn about make Configure options Read vehicle reviews Compare prices Print details to take to dealers 0% 10% 20% 30% 40% 50% 60% 70% 80% Base: New car buyers who used manufacturer sites Q: Which of the following activities did you do on manufacturer sites? 20
Use of Manufacturer Sites Used manufacturer sites Established 47% Evolving 41% Emerging 47% For Dealer-Related Activities Locate a dealer or showroom Find out service/warranty info Obtain a quote Contact a dealer Book a test drive 0% 10% 20% 30% 40% 50% 60% 70% 80% Base: New car buyers who used manufacturer sites Q: Which of the following activities did you do on manufacturer sites? 21
Use of Manufacturer Sites Used manufacturer sites Established 47% Evolving 41% Emerging 47% For Purchase-Related Activities Find out the cost of insurance Use a loan calculator Find out about financing Apply for financing 0% 10% 20% 30% 40% 50% 60% 70% 80% Emerging (n=713) Evolving (n=823) Established (n=2282) Base: New car buyers who used manufacturer sites Q: Which of the following activities did you do on manufacturer sites? 22
Search Engines 23
Use & Importance of Search Use of Search as a Source or Gateway Established Evolving Emerging 84% 82% 88% 83% 89% 88% 80% 77% 89% 81% 88% 84% 86% 84% 88% 93% 94% 94% 96% 95% AU DE ES FR IT JP NL NZ UK US AR BR MX PO CN IN RU Base: New car buyers who used the Internet for research Importance of Search Top 2 box scores (4 or 5 on 5-pt. important scale) Established Evolving Emerging 73% 62% 55% 56% 68% 61% 59% 61% 75% 72% 71% 69% 63% 61% 65% 61% 57% 54% 50% 60% AU DE ES FR IT JP NL NZ UK US AR BR MX PO CN IN RU Base: Use search engines as a source Q: Which online sources of information did you use at any stage in researching and buying your vehicle? Q: Thinking about your use of each source in the overall process, how would you rate its importance where 1 is not at all important and 5 is extremely Google important? Confidential and Proprietary 24
Navigation to Automotive Sites 100% 90% 80% 70% 60% Established Evolving Emerging 50% 40% 30% 20% 10% 0% Base: Use the site Use a search engine Type in URL Site is bookmarked/ favorite Follow links from other sources Q: Which methods did you typically use to find the websites you used during your purchase process? 25
Online Automotive Video Viewership Established Evolving Emerging 91% 64% 59% 71% 64% 61% 75% 59% 65% 75% 67% 78% 44% 53% 49% 45% 43% 55% 52% 54% AU DE ES FR IT JP NL NZ UK US AR BR MX PO CN IN RU Base: New car buyers who use the internet for car research Q: Which online sources of information did you use at any stage in researching and buying your vehicle? 2 6
Benefits of Online Automotive Video Convenient way to get information on cars Videos on my car of interest were readily available I'm satisfied with the quality of the videos I wish there were more online videos available Videos increased my interest Videos helped narrow down choices Videos introduced me to cars I hadn't considered I first heard about a car from a video 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Emerging (n=785) Evolving (n=825) Established (n=1741) Top 2 box scores (4 or 5 on 5-pt. agree scale) Base: New car buyers who watched videos Q: You stated that you used online auto videos when researching and buying your vehicle. Please read each statement and indicate to what extent you agree /disagree. 2 7
Online Automotive Videos Sources & Types Sources for Online Automotive Videos 60% 50% 40% 30% 20% 10% 0% YouTube Manufacturer sites Dealer sites Enthusiast sites Auto sales sites Third-party Types of Videos Viewed comparison sites Base: Watched online videos Q: On which websites did you watch online auto videos during the purchase process? 2 8
User Generated Content 29
Reliance on Peer Information Use of UGC for Vehicle Research Established Evolving Emerging 72% 31% 23% 33% 34% 28% 27% 26% 29% 29% 35% 23% 19% 27% 51% 30% 31% 51% 47% 57% AU DE ES FR IT JP NL NZ UK US AR BR MX PO CN IN RU Base: New car buyers who use the internet for car research Types of UGC for Vehicle Research 46% 26% 24% 7% 17% 15% 6% 3% 5% Consumer rating/review sites Blogs Social networking sites Base: Use the internet for research Established (n=3612) Evolving (n=1433) Emerging (n=1185) Q: Which sources of information did you use at any stage in researching and buying your vehicle? 3 0
Car Buyer Opinions on UGC When researching a vehicle purchase, user-generated content is A good supplement Informative Interesting Information I am using more Very influential More important than manufacturer information Trustworthy More important than expert opinions Top 2 box scores (4 or 5 on 5-pt. agree scale) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Established (n=1071) Evolving (n=444) Emerging (n=673) Base: Use UGC Q: How much do you agree or disagree with each of the following statements about your experience with "user-generated content" during the auto purchase proces 3 1
Like what you learned? Find more studies and data at www.google.com/think/insights